Cautionary Levels For The Short Term

Published 07/03/2012, 01:40 AM
Updated 07/09/2023, 06:31 AM

The McClellan Oscillator (Telechart T2106) is back to cautionary levels  for the immediate short term just like it was on 6/19/2012 right before a 3.2% correction in 4 days for the S&P 500. While I believe this overbought reading is positive in the intermediate term, in the short term it might be best to wait a little to get to aggressive on long trades if you are a short term trader.

My focus today will be ETF’S that are down 5 days in a row that might revert in the short term due to the overbought nature of the market. Direxion Daily Energy Bear 3x Shares ETF (ERY), ProShares Ultra Short Basic Materials (SMN), iPath S&P 500 VIX MT Futures ETN (VXZ), ProShares UltraShort Real Estate ETF (SRS), ProShares UltraShort Russell 2000 ETF (TWM), ProShares UltraShort Oil & Gas (DUG).
T2106 Today Chart

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.